Avarua Bakery general manager Kervin Aroita says there will be increases in the cost of bread over the coming months. MATTHEW LITTLE/22031501
Consumers could face major increases to the price of bread, as bakeries deal with the flow-on effects of supply chain issues from Covid-19 and Russia’s conflict with Ukraine.
general manager Kervin Aroita said it would be the biggest increase to wheat
prices in more than a year, and he had very little choice but to pass on the
cost to consumers.
not much I can do about it,” Aroita said.
news is that we have enough supply to keep the prices steady until April, but
after that, they will rise.”
he expected the increase to wheat and flour prices to arrive sometime in April,
with the increase likely to be as high as 10 per cent.
freight costs were also affecting bakers in the Cook Islands.
paying significantly more for freight, the price of a 20-tonne container from
New Zealand has gone from $5200 to $6000 in recent times,” he said.
is pretty expensive.”
there were several reasons for the pending increase in wheat prices.
They included restriction of supply with Australia and New Zealand, the conflict between Russian and Ukraine - who collectively account for 30 per cent of global wheat exports - and increased costs due to Covid-19.
this was not the first time he had faced supply issues.
pretty bad back in 2008,” he said.
the family-owned business was looking at various ways to help soften some of
the increase in prices, including moving to wholesale and decreasing the size
of loafs to something more in line with New Zealand.
would lead to increased equipment costs, so it’s all a bit of a challenge.”
advised consumers to consider other options rather than just going for fresh
same day bread.
old bread is still good bread,” Aroita said.
co-owner Victoria Dearlove said she did not yet know how big the increase in
prices for wheat for their operations would be, but it came at a time when they
were dealing with increases in a range of products.
went up 15 per cent for us last week, so if the price of wheat and bread
increases anything near that amount, it’s a double whammy,” Dearlove said.
not just supply costs, pretty much everything is increasing across the board.
We will have to tackle increases in power and eventually fuel as well.”
said it was inevitable that these increases would have to be passed on to the
have to wait and see. We haven’t had the chance to look at our response to
increased wheat prices, because we simply don’t know how big the increase will
Islands Trading Company (CITC) general manager Gaye Whitta said there were a
lot of hidden costs, such as shipping costs, that were not passed on to the
we’ve all got to be mindful of increased product costs,” Whitta said.
the past year or so had been tough for consumers, and reinforced the need to
“tighten our belts”.
have to think of ways to better use our money.”
it was a significant issue for the people of the Cook Islands.